Speaking in support of the bipartisan “Housing Finance Reform and Taxpayer Protection Act of 2013” — which provides for an explicit government guarantee for the secondary mortgage market — NAR President Gary Thomas testified before the Senate Committee on Banking, Housing and Urban Affairs today.
Thomas explained NAR’s position that any reform of the secondary market must ensure that creditworthy consumers retain access to safe, secure, and affordable sources of capital in all market conditions. NAR has warned that, without such a guarantee, the government risks a major disruption to the economy:
Realtors® support a stable secondary mortgage market with strong, reasonable lending standards and access to credit. We believe that the current system can be transitioned into a marketplace that is bound by an explicit government guarantee and a sustained flow of private capital while protecting taxpayers from unnecessary risk. We fear that without the government’s backing, the only mortgage products available in the secondary market for the average home buyer would not be aligned with their best interests.